Fed to Inject $1.5 Trillion in
Short-Term Funding Markets The remarkable decision
by the New York Fed was
announced on Thursday. NY Fed, via 'The Wall Street Journal' Short-term lending markets are used
by banks so that they
can lend to each other. The Fed will also purchase
$60 billion in Treasury bonds in order
to stabilize that market as well. Such actions by the central bank
have not occurred since the 2008 financial crisis. The announcement caused a brief rally on Wall Street,
which experienced its second circuit breaker
shut down of the week on Thursday. The bounce back was short lived.
The Dow was down seven percent
in late afternoon trading.